Last checked at 31 Jan 2020 07:00
Friday, 31 January 2020
THOR MINING PLC
("Thor" or the "Company")
Appendix 5B
The Directors of Thor Mining PLC (AIM, ASX: THR) today released the following announcement on the Australian Securities Exchange ("ASX"), as required under the listing rules of the ASX.
Enquiries:
Mick Billing | +61 (8) 7324 1935 | Thor Mining PLC | Executive Chairman |
Ray Ridge | +61 (8) 7324 1935 | Thor Mining PLC | CFO/Company Secretary |
Colin Aaronson/ Richard Tonthat/ Ben Roberts | +44 (0) 207 383 5100
| Grant Thornton UK LLP
| Nominated Adviser |
Claire Louise Noyce / John Beresford-Peirse
| +44 (0) 203 764 2341 | Hybridan LLP | Joint Broker |
Nick Emerson | +44 (0) 1483 413 500 | SI Capital Ltd | Joint Broker |
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including an Inferred resource for the Bonya copper deposit².
Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.
Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource⁴ on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.
Thor has an interest in Hawkstone Mining Limited, an Australian ASX listed company with a 100% Interest in a Lithium project in Arizona, USA.
Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project⁵ of:
• A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
• A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.
Notes
¹ Refer ASX and AIM announcement of 23 August 2018
² Refer ASX and AIM announcement of 26 November 2018
³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018
⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018
⁵ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
Appendix 5B
Mining exploration entity or oil and gas exploration entityquarterly cash flow report
Name of entity | ||
THOR MINING PLC | ||
ABN |
| Quarter ended ("current quarter") |
121 117 673 | 31 DECEMBER 2019 | |
Consolidated statement of cash flows | Current quarter$A'000 | Year to date (6 months)$A'000 | |
1. | Cash flows from operating activities | 30 | 32 |
1.1 | Receipts from customers | ||
1.2 | Payments for | (13) | (13) |
(a) exploration & evaluation (if expensed) | |||
(b) development | |||
(c) production | |||
(d) staff costs | (50) | (112) | |
(e) administration and corporate costs | (360) | (588) | |
1.3 | Dividends received (see note 3) | ||
1.4 | Interest received | - | 2 |
1.5 | Interest and other costs of finance (leases) | (4) | (4) |
1.6 | Income taxes paid | ||
1.7 | Government grants and tax incentives | - | 222 |
1.8 | Other (provide details if material) | ||
1.9 | Net cash from / (used in) operating activities | (397) | (461) |
2. | Cash flows from investing activities | ||
2.1 | Payments to acquire: | ||
(a) entities | |||
(b) tenements | |||
(c) property, plant and equipment | |||
(d) exploration & evaluation (if capitalised) | (285) | (648) | |
(e) investments | |||
(f) other non-current assets | |||
2.2 | Proceeds from the disposal of: | ||
(a) entities | |||
(b) tenements | |||
(c) property, plant and equipment | |||
(d) investments | 71 | 71 | |
(e) other non-current assets | |||
2.3 | Cash flows from loans to other entities | (100) | (100) |
2.4 | Dividends received (see note 3) | ||
2.5 | Other (provide details if material) | ||
2.6 | Net cash from / (used in) investing activities | (314) | (677) |
3. | Cash flows from financing activities | 890 | 890 |
3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
3.2 | Proceeds from issue of convertible debt securities | ||
3.3 | Proceeds from exercise of options | ||
3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (81) | (81) |
3.5 | Proceeds from borrowings | ||
3.6 | Repayment of lease principal | (26) | (26) |
3.7 | Transaction costs related to loans and borrowings | ||
3.8 | Dividends paid | ||
3.9 | Other (provide details if material) | ||
3.10 | Net cash from / (used in) financing activities | 783 | 783 |
4. | Net increase / (decrease) in cash and cash equivalents for the period | ||
4.1 | Cash and cash equivalents at beginning of period | 517 | 944 |
4.2 | Net cash from / (used in) operating activities (item 1.9 above) | (397) | (461) |
4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (314) | (677) |
4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 783 | 783 |
4.5 | Effect of movement in exchange rates on cash held | 4 | 4 |
4.6 | Cash and cash equivalents at end of period | 593 | 593 |
5. | Reconciliation of cash and cash equivalentsat the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
5.1 | Bank balances | 593 | 517 |
5.2 | Call deposits | ||
5.3 | Bank overdrafts | ||
5.4 | Other (provide details) | ||
5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 593 | 517 |
6. | Payments to related parties of the entity and their associates | Current quarter$A'000 |
6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 183 |
6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | |
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments | ||
The amount at Item 6.1 above represents payments to Directors for Directors fees, the salary paid to the Executive Director, Richard Bradey, and other consulting services provided, including services provided by Mick Billing as CEO.
7. | Financing facilitiesNote: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end$A'000 | Amount drawn at quarter end$A'000 |
7.1 | Loan facilities | ||
7.2 | Credit standby arrangements | ||
7.3 | Other (please specify) | ||
7.4 | Total financing facilities | ||
7.5 | Unused financing facilities available at quarter end | ||
7.6 | Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. | ||
| |||
8. | Estimated cash available for future operating activities | $A'000 |
8.1 | Net cash from / (used in) operating activities (Item 1.9) | (397) |
8.2 | Capitalised exploration & evaluation (Item 2.1(d)) | (285) |
8.3 | Total relevant outgoings (Item 8.1 + Item 8.2) | (682) |
8.4 | Cash and cash equivalents at quarter end (Item 4.6) | 593 |
8.5 | Unused finance facilities available at quarter end (Item 7.5) | - |
8.6 | Total available funding (Item 8.4 + Item 8.5) | 593 |
8.7 | Estimated quarters of funding available (Item 8.6 divided by Item 8.3) | 0.9 |
8.8 | If Item 8.7 is less than 2 quarters, please provide answers to the following questions: | |
1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? | ||
Answer: The net operating cashflows for the next quarter, ended 31 March 2020 the Company is forecasting a reduction of approximately $200,000 from the $682,000 in the most recent quarter ended 31 December 2019. | ||
2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? | ||
Answer: Thor holds a production royalty entitlement, from the Spring Hill Gold project, of $14 per ounce of gold produced while the gold price is above $1,500 per ounce (otherwise $6 per ounce). The owners of the Spring Hill project have advised that they are progressing mine permitting, and also that the treatment plant for toll processing the ore has been refurbished. They are hopeful of commencement of operations in the near term. Thor has engaged with several royalty companies who have expressed interest in acquiring this royalty entitlement from Thor. Due diligence is in progress, and the Company has been advised that an offer for the royalty will be made shortly.
| ||
3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? | ||
Answer: The Company expects to continue operations and to meet its business objectives on the basis of available funds being sufficient for at least the next quarter, while the sale process for the Spring Hill royalty is being progressed, together with other alternatives being considered to raise funds.
| ||
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 January 2020….....................................................
Authorised by: ...By the Board...........................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.